Samsung Electronics Announces 2005 Third Quarter Earnings
Operating income was 2.13 trillion won, or up 28.8% from the previous quarter.
Net profit in the third-quarter increased 11% compared with the previous quarter, while sales jumped 7% compared to the previous quarter.
Solid sales of semiconductors, LCD, and mobile phones were key factors that helped Samsung register strong revenue in spite of the difficult business climate caused by rising global oil prices. Operating profit surged 29% in the third quarter from the previous quarter on the back of increased sales of NAND Flash chips, strong demand of LCDs, and increased sales of mobile phones in Europe and North America.
The growth rate in net profit in the third-quarter was less than that of operating profit due to provisionsset aside to cover costs related to the U.S-government investigation into the price-fixing of memory chips.
Due to the provisions, equity-related gains decreased in the third quarter.
Sales and net income of the Semiconductor Business increased to 4.59 trillion won and 1.35 trillion won, respectively, as demand for NAND Flash chips used in MP3 players and mobile phones remained robust.
Migration to the finer process technology in both DRAM and NAND Flash helped reduce manufacturing costs and boost profitability.
Samsung produces DRAM chips on 80nm and 90nm processes, and the company finished developing a 512Mbit DDR2 memory device on a 90nm process. Yields per wafer will be 100% higher than using 90nm technology.
The Telecommunication Network Business posted sales of 4.58 trillion won, and operating income of 550 billion won. Samsung sold a record 26.8 million phones in the third quarter. Globally, the handset market is increasing becoming more competitive as companies produce more mid-to-low-end handsets. Meanwhile, Samsung continues to be a market leader in the high-end, premium handset sector.
Demand for Blue-Black phones, which were launched November 2004, remained robust in the third quarter.
The company expects stronger ASPs in the fourth quarter with the launch of new premium products such as the D600 and 3G phones.
The LCD Business reported revenue and operating income figures of 2.68 trillion won and 300 billion won, respectively. The company expects its performance to improve in the fourth quarter as demand for LCDs increases, especially of sales of 32-inch and larger LCD TV panels.
Digital Media Business sales decreased to 1.64 trillion won and posted a 20 billion won operating loss.
Sales of its Digital Appliance Business dropped 15% to 850 billion won and operating income at 40 billion won.
Dr. Woosik Chu, Senior Vice President of Samsung's investor-relations team, said "Despite the challenging business environment and depressed market conditions, sales of our mainstay products remained robust, demonstrating the inherent strength and competitiveness of Samsung's business model." Dr. Chu adds, "Samsung Electronics anticipates positive fourth-quarter results as demand for IT products tend to surge in the year end."
Revenue by Business (in trillion won)
Business
3Q04 2Q05 3Q05 Growth YoY (%) QoQ (%)
Semiconductor
4.74 4.17 4.59 (3.2) 10.2
Memory
3.64 3.22 3.47 (4.6) 7.7
System LSI
0.63 0.45 0.55 (11.4) 22.8
LCD
1.90 2.12 2.68 41.1 26.4
Telecommunication Network
4.82 4.46 4.58 (5.1) 2.7
Mobile Phone
4.57 4.19 4.37 (4.2) 4.5
Digital Media
1.95 1.61 1.64 (15.8) 2.0
Digital Appliance
0.81 1.00 0.85 4.8 (15.0)
Total Revenue
14.34 13.59 14.54 1.4 7.0
Operating Profit by Business (in trillion won)
Business
3Q04 2Q05 3Q05 Growth YoY (%) QoQ (%)
Semiconductor
1.95 1.10 1.35 (30.8) 21.9
LCD
0.23 0.01 0.30 31.7 2,245.1
Telecommunication Network
0.61 0.53 0.55 (10.4) 3.1
Digital Media
(0.033) (0.05) (0.02) 24.8 53.1
Digital Appliance
(0.009) 0.03 (0.04) (394.4) -
Total Operating Profit
2.74 1.65 2.13 (22.5) (28.8)
삼성전자 개요
삼성전자는 반도체, 통신, 디지털 미디어와 디지털 컨버전스 기술을 보유한 글로벌 리더다. 삼성전자는 디지털 어플라이언스 부문, 디지털 미디어 부문, LCD 부문, 반도체 부문, 통신 네트워크 부문 등 5개 부문으로 이뤄져 있다. 세계에서 가장 빠르게 성장하는 브랜드인 삼성전자는 스마트폰, 디지털 TV, 메모리 반도체, OLED, TFT-LCD 분야에서 세계 선두 주자다.
웹사이트: http://www.samsung.com/sec
연락처
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